UNITED STATES
|
SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-Q
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OR
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Commission File Number: 1-12579
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OGE ENERGY CORP.
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(Exact name of registrant as specified in its charter)
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Oklahoma
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73-1481638
|
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(State or other jurisdiction of
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(I.R.S. Employer
|
|
incorporation or organization)
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Identification No.)
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321 North Harvey
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P.O. Box 321
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Oklahoma City, Oklahoma 73101-0321
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(Address of principal executive offices)
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(Zip Code)
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405-553-3000
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(Registrant’s telephone number, including area code)
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
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Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes o No
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer þ
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Accelerated filer o
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Non-accelerated filer o (Do not check if a smaller reporting company)
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Smaller reporting company o
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes o No þ
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At June 30, 2010, there were 97,372,989 shares of common stock, par value $0.01 per share, outstanding.
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Page
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||
1
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||
Item 1. Financial Statements (Unaudited)
|
||
Condensed Consolidated Statements of Income
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2
|
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Condensed Consolidated Statements of Cash Flows
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3
|
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Condensed Consolidated Balance Sheets
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4
|
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Condensed Consolidated Statements of Changes in Stockholders’ Equity
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6
|
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Notes to Condensed Consolidated Financial Statements
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8
|
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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35
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
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61
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Item 4. Controls and Procedures
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62
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Item 1. Legal Proceedings
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62
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Item 1A. Risk Factors
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64
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
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64
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Item 6. Exhibits
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65
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66
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||
Ÿ
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general economic conditions, including the availability of credit, access to existing lines of credit, access to the commercial paper markets, actions of rating agencies and their impact on capital expenditures;
|
Ÿ
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the ability of OGE Energy Corp. (collectively, with its subsidiaries, the “Company”) and its subsidiaries to access the capital markets and obtain financing on favorable terms;
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Ÿ
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prices and availability of electricity, coal, natural gas and natural gas liquids, each on a stand-alone basis and in relation to each other;
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Ÿ
|
business conditions in the energy and natural gas midstream industries;
|
Ÿ
|
competitive factors including the extent and timing of the entry of additional competition in the markets served by the Company;
|
Ÿ
|
unusual weather;
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Ÿ
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availability and prices of raw materials for current and future construction projects;
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Ÿ
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Federal or state legislation and regulatory decisions and initiatives that affect cost and investment recovery, have an impact on rate structures or affect the speed and degree to which competition enters the Company’s markets;
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Ÿ
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environmental laws and regulations that may impact the Company’s operations;
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Ÿ
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changes in accounting standards, rules or guidelines;
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Ÿ
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the discontinuance of accounting principles for certain types of rate-regulated activities;
|
Ÿ
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creditworthiness of suppliers, customers and other contractual parties;
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Ÿ
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the higher degree of risk associated with the Company’s nonregulated business compared with the Company’s regulated utility business; and
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Ÿ
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other risk factors listed in the reports filed by the Company with the Securities and Exchange Commission including those listed in “Item 1A. Risk Factors” and in Exhibit 99.01 to the Company’s 2009 Form 10-K.
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OGE ENERGY CORP.
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||||||||||||
(Unaudited)
|
||||||||||||
Three Months Ended
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Six Months Ended
|
|||||||||||
June 30,
|
June 30,
|
|||||||||||
(In millions, except per share data)
|
2010
|
2009
|
2010
|
2009
|
||||||||
OPERATING REVENUES
|
||||||||||||
Electric Utility operating revenues
|
$
|
512.8
|
$
|
425.3
|
$
|
956.8
|
$
|
762.0
|
||||
Natural Gas Pipeline operating revenues
|
374.4
|
218.8
|
806.2
|
488.7
|
||||||||
Total operating revenues
|
887.2
|
644.1
|
1,763.0
|
1,250.7
|
||||||||
COST OF GOODS SOLD (exclusive of depreciation and amortization
|
||||||||||||
shown below)
|
||||||||||||
Electric Utility cost of goods sold
|
218.9
|
176.4
|
457.8
|
335.5
|
||||||||
Natural Gas Pipeline cost of goods sold
|
287.6
|
147.8
|
618.8
|
341.9
|
||||||||
Total cost of goods sold
|
506.5
|
324.2
|
1,076.6
|
677.4
|
||||||||
Gross margin on revenues
|
380.7
|
319.9
|
686.4
|
573.3
|
||||||||
Other operation and maintenance
|
135.0
|
105.6
|
258.6
|
222.1
|
||||||||
Depreciation and amortization
|
71.2
|
64.6
|
141.5
|
127.2
|
||||||||
Impairment of assets
|
---
|
1.4
|
---
|
1.4
|
||||||||
Taxes other than income
|
23.0
|
21.9
|
48.0
|
44.2
|
||||||||
OPERATING INCOME
|
151.5
|
126.4
|
238.3
|
178.4
|
||||||||
OTHER INCOME (EXPENSE)
|
||||||||||||
Loss in earnings of unconsolidated affiliate
|
(1.3)
|
---
|
(1.3)
|
---
|
||||||||
Interest income
|
---
|
0.4
|
---
|
1.1
|
||||||||
Allowance for equity funds used during construction
|
2.3
|
3.9
|
4.6
|
5.2
|
||||||||
Other income
|
3.4
|
6.5
|
6.5
|
13.0
|
||||||||
Other expense
|
(3.7)
|
(2.7)
|
(6.1)
|
(5.0)
|
||||||||
Net other income
|
0.7
|
8.1
|
3.7
|
14.3
|
||||||||
INTEREST EXPENSE
|
||||||||||||
Interest on long-term debt
|
33.4
|
31.9
|
67.0
|
63.3
|
||||||||
Allowance for borrowed funds used during construction
|
(1.0)
|
(1.9)
|
(2.2)
|
(3.0)
|
||||||||
Interest on short-term debt and other interest charges
|
1.6
|
1.7
|
3.3
|
4.1
|
||||||||
Interest expense
|
34.0
|
31.7
|
68.1
|
64.4
|
||||||||
INCOME BEFORE TAXES
|
118.2
|
102.8
|
173.9
|
128.3
|
||||||||
INCOME TAX EXPENSE
|
40.3
|
31.9
|
70.8
|
39.8
|
||||||||
NET INCOME
|
77.9
|
70.9
|
103.1
|
88.5
|
||||||||
Less: Net income attributable to noncontrolling interest
|
0.6
|
0.4
|
1.6
|
1.2
|
||||||||
NET INCOME ATTRIBUTABLE TO OGE ENERGY
|
$
|
77.3
|
$
|
70.5
|
$
|
101.5
|
$
|
87.3
|
||||
BASIC AVERAGE COMMON SHARES OUTSTANDING
|
97.3
|
96.5
|
97.2
|
95.6
|
||||||||
DILUTED AVERAGE COMMON SHARES OUTSTANDING
|
98.7
|
97.5
|
98.6
|
96.4
|
||||||||
BASIC EARNINGS PER AVERAGE COMMON SHARE
|
||||||||||||
ATTRIBUTABLE TO OGE ENERGY COMMON SHAREHOLDERS
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$
|
0.79
|
$
|
0.73
|
$
|
1.04
|
$
|
0.91
|
||||
DILUTED EARNINGS PER AVERAGE COMMON SHARE
|
||||||||||||
ATTRIBUTABLE TO OGE ENERGY COMMON SHAREHOLDERS
|
$
|
0.78
|
$
|
0.72
|
$
|
1.03
|
$
|
0.91
|
||||
DIVIDENDS DECLARED PER SHARE
|
$
|
0.3625
|
$
|
0.3550
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$
|
0.7250
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$
|
0.7100
|
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part hereof.
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OGE ENERGY CORP.
|
|||||||
(Unaudited)
|
|||||||
Six Months Ended
|
|||||||
June 30,
|
|||||||
(In millions)
|
2010
|
2009
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|||||||
Net income
|
$
|
103.1
|
$
|
88.5
|
|||
Adjustments to reconcile net income to net cash provided from
|
|||||||
operating activities
|
|||||||
Loss in earnings of unconsolidated affiliate
|
1.3
|
---
|
|||||
Depreciation and amortization
|
141.5
|
127.2
|
|||||
Impairment of assets
|
---
|
1.4
|
|||||
Deferred income taxes and investment tax credits, net
|
52.2
|
52.9
|
|||||
Allowance for equity funds used during construction
|
(4.6)
|
(5.2)
|
|||||
Loss on disposition and abandonment of assets
|
0.9
|
0.3
|
|||||
Stock-based compensation expense
|
3.9
|
2.8
|
|||||
Stock-based compensation converted to cash for tax withholding
|
(1.6)
|
(1.7)
|
|||||
Price risk management assets
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(4.4)
|
6.1
|
|||||
Price risk management liabilities
|
11.4
|
(63.0)
|
|||||
Other assets
|
11.7
|
4.9
|
|||||
Other liabilities
|
(40.7)
|
(39.2)
|
|||||
Change in certain current assets and liabilities
|
|||||||
Accounts receivable, net
|
(24.1)
|
33.1
|
|||||
Accrued unbilled revenues
|
(24.4)
|
(26.6)
|
|||||
Income taxes receivable
|
150.6
|
(27.3)
|
|||||
Fuel, materials and supplies inventories
|
(28.5)
|
(34.4)
|
|||||
Gas imbalance assets
|
(1.8)
|
3.9
|
|||||
Fuel clause under recoveries
|
(0.6)
|
23.9
|
|||||
Other current assets
|
8.9
|
(0.5)
|
|||||
Accounts payable
|
4.8
|
(74.3)
|
|||||
Customer deposits
|
18.3
|
2.6
|
|||||
Accrued taxes
|
20.4
|
16.4
|
|||||
Accrued interest
|
(7.8)
|
10.6
|
|||||
Accrued compensation
|
(3.6)
|
(3.5)
|
|||||
Gas imbalance liabilities
|
(4.2)
|
(13.2)
|
|||||
Fuel clause over recoveries
|
(50.1)
|
118.8
|
|||||
Other current liabilities
|
8.9
|
(17.6)
|
|||||
Net Cash Provided from Operating Activities
|
341.5
|
186.9
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|||||||
Capital expenditures (less allowance for equity funds used during
|
|||||||
construction)
|
(296.6)
|
(491.2)
|
|||||
Construction reimbursement
|
3.3
|
17.6
|
|||||
Proceeds from sale of assets
|
1.6
|
0.7
|
|||||
Other investing activities
|
0.1
|
---
|
|||||
Net Cash Used in Investing Activities
|
(291.6)
|
(472.9)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|||||||
Retirement of long-term debt
|
(289.2)
|
---
|
|||||
Dividends paid on common stock
|
(70.4)
|
(67.5)
|
|||||
(Decrease) increase in short-term debt
|
(62.1)
|
84.2
|
|||||
Repayment of line of credit
|
(50.0)
|
(40.0)
|
|||||
Issuance of common stock
|
9.8
|
68.7
|
|||||
Proceeds from line of credit
|
115.0
|
80.0
|
|||||
Proceeds from long-term debt
|
246.2
|
198.4
|
|||||
Net Cash (Used in) Provided from Financing Activities
|
(100.7)
|
323.8
|
|||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
(50.8)
|
37.8
|
|||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
58.1
|
174.4
|
|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
7.3
|
$
|
212.2
|
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part hereof.
|
OGE ENERGY CORP.
|
|||||||
June 30,
|
December 31,
|
||||||
2010
|
2009
|
||||||
(In millions)
|
(Unaudited)
|
||||||
ASSETS
|
|||||||
CURRENT ASSETS
|
|||||||
Cash and cash equivalents
|
$
|
7.3
|
$
|
58.1
|
|||
Accounts receivable, less reserve of $1.7 and $2.4, respectively
|
315.5
|
291.4
|
|||||
Accrued unbilled revenues
|
81.6
|
57.2
|
|||||
Income taxes receivable
|
7.1
|
157.7
|
|||||
Fuel inventories
|
140.5
|
118.5
|
|||||
Materials and supplies, at average cost
|
84.9
|
78.4
|
|||||
Price risk management
|
8.0
|
1.8
|
|||||
Gas imbalances
|
5.0
|
3.2
|
|||||
Accumulated deferred tax assets
|
37.0
|
39.8
|
|||||
Fuel clause under recoveries
|
0.9
|
0.3
|
|||||
Prepayments
|
6.4
|
8.7
|
|||||
Other
|
3.4
|
11.0
|
|||||
Total current assets
|
697.6
|
826.1
|
|||||
OTHER PROPERTY AND INVESTMENTS, at cost
|
41.6
|
43.7
|
|||||
PROPERTY, PLANT AND EQUIPMENT
|
|||||||
In service
|
8,925.8
|
8,617.8
|
|||||
Construction work in progress
|
250.5
|
335.4
|
|||||
Total property, plant and equipment
|
9,176.3
|
8,953.2
|
|||||
Less accumulated depreciation
|
3,119.4
|
3,041.6
|
|||||
Net property, plant and equipment
|
6,056.9
|
5,911.6
|
|||||
DEFERRED CHARGES AND OTHER ASSETS
|
|||||||
Income taxes recoverable from customers, net
|
39.8
|
19.1
|
|||||
Benefit obligations regulatory asset
|
341.3
|
357.8
|
|||||
Price risk management
|
2.5
|
4.3
|
|||||
Unamortized loss on reacquired debt
|
16.0
|
16.5
|
|||||
Unamortized debt issuance costs
|
16.7
|
15.3
|
|||||
Other
|
81.7
|
72.3
|
|||||
Total deferred charges and other assets
|
498.0
|
485.3
|
|||||
TOTAL ASSETS
|
$
|
7,294.1
|
$
|
7,266.7
|
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part hereof.
|
OGE ENERGY CORP.
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
|
||||||
June 30,
|
December 31,
|
|||||
2010
|
2009
|
|||||
(In millions)
|
(Unaudited)
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||
CURRENT LIABILITIES
|
||||||
Short-term debt
|
$
|
112.9
|
$
|
175.0
|
||
Accounts payable
|
277.2
|
297.0
|
||||
Dividends payable
|
35.3
|
35.1
|
||||
Customer deposits
|
93.5
|
85.6
|
||||
Accrued taxes
|
55.8
|
37.0
|
||||
Accrued interest
|
52.8
|
60.6
|
||||
Accrued compensation
|
46.5
|
50.1
|
||||
Long-term debt due within one year
|
---
|
289.2
|
||||
Price risk management
|
9.6
|
14.2
|
||||
Gas imbalances
|
7.8
|
12.0
|
||||
Fuel clause over recoveries
|
137.4
|
187.5
|
||||
Other
|
41.3
|
32.4
|
||||
Total current liabilities
|
870.1
|
1,275.7
|
||||
LONG-TERM DEBT
|
2,402.6
|
2,088.9
|
||||
DEFERRED CREDITS AND OTHER LIABILITIES
|
||||||
Accrued benefit obligations
|
337.5
|
369.3
|
||||
Accumulated deferred income taxes
|
1,321.1
|
1,246.6
|
||||
Accumulated deferred investment tax credits
|
11.3
|
13.1
|
||||
Accrued removal obligations, net
|
175.5
|
168.2
|
||||
Price risk management
|
---
|
0.1
|
||||
Other
|
56.3
|
44.0
|
||||
Total deferred credits and other liabilities
|
1,901.7
|
1,841.3
|
||||
Total liabilities
|
5,174.4
|
5,205.9
|
||||
COMMITMENTS AND CONTINGENCIES (NOTE 12)
|
||||||
STOCKHOLDERS’ EQUITY
|
||||||
Common stockholders’ equity
|
902.3
|
887.7
|
||||
Retained earnings
|
1,258.7
|
1,227.8
|
||||
Accumulated other comprehensive loss, net of tax
|
(62.9)
|
(74.7)
|
||||
Total OGE Energy stockholders’ equity
|
2,098.1
|
2,040.8
|
||||
Noncontrolling interest
|
21.6
|
20.0
|
||||
Total stockholders’ equity
|
2,119.7
|
2,060.8
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
7,294.1
|
$
|
7,266.7
|
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part hereof.
|
OGE ENERGY CORP.
|
||||||
(Unaudited)
|
||||||
Premium
|
Accumulated
|
|||||
on
|
Other
|
|||||
Common
|
Capital
|
Retained
|
Comprehensive
|
Noncontrolling
|
||
(In millions)
|
Stock
|
Stock
|
Earnings
|
Income (Loss)
|
Interest
|
Total
|
Balance at December 31, 2009
|
$ 1.0
|
$ 886.7
|
$ 1,227.8
|
$ (74.7)
|
$ 20.0
|
$ 2,060.8
|
Comprehensive income (loss)
|
||||||
Net income for first quarter of 2010
|
---
|
---
|
24.2
|
---
|
1.0
|
25.2
|
Other comprehensive income (loss), net of tax
|
||||||
Defined benefit pension plan and restoration of
|
||||||
retirement income plan:
|
||||||
Amortization of deferred net loss, net of tax ($1.2
pre-tax)
|
---
|
---
|
---
|
0.5
|
---
|
0.5
|
Defined benefit postretirement plans:
|
||||||
Amortization of deferred net loss, net of tax ($1.0
pre-tax)
|
---
|
---
|
---
|
0.6
|
---
|
0.6
|
Amortization of deferred net transition obligation,
net of tax ($0.2 pre-tax)
|
---
|
---
|
---
|
0.2
|
---
|
0.2
|
Amortization of prior service cost, net of tax (($0.2)
pre-tax)
|
---
|
---
|
---
|
(0.2)
|
---
|
(0.2)
|
Deferred commodity contracts hedging losses, net of tax
|
||||||
(($4.3) pre-tax)
|
---
|
---
|
---
|
(2.7)
|
---
|
(2.7)
|
Amortization of cash flow hedge, net of tax ($0.1
pre-tax)
|
---
|
---
|
---
|
0.1
|
---
|
0.1
|
Other comprehensive loss
|
---
|
---
|
---
|
(1.5)
|
---
|
(1.5)
|
Comprehensive income (loss)
|
---
|
---
|
24.2
|
(1.5)
|
1.0
|
23.7
|
Dividends declared on common stock
|
---
|
---
|
(35.3)
|
---
|
---
|
(35.3)
|
Issuance of common stock
|
---
|
6.5
|
---
|
---
|
---
|
6.5
|
Balance at March 31, 2010
|
$ 1.0
|
$ 893.2
|
$ 1,216.7
|
$ (76.2)
|
$ 21.0
|
$ 2,055.7
|
Comprehensive income
|
||||||
Net income for second quarter of 2010
|
---
|
---
|
77.3
|
---
|
0.6
|
77.9
|
Other comprehensive income, net of tax
|
||||||
Defined benefit pension plan and restoration of
|
||||||
retirement income plan:
|
||||||
Amortization of deferred net loss, net of tax ($0.8
pre-tax)
|
---
|
---
|
---
|
0.5
|
---
|
0.5
|
Amortization of prior service cost, net of tax ($0.1
pre-tax)
|
---
|
---
|
---
|
0.1
|
---
|
0.1
|
Defined benefit postretirement plans:
|
||||||
Amortization of deferred net loss, net of tax ($0.5
pre-tax)
|
---
|
---
|
---
|
0.3
|
---
|
0.3
|
Amortization of deferred net transition obligation,
net of tax ($0.2 pre-tax)
|
---
|
---
|
---
|
0.1
|
---
|
0.1
|
Deferred commodity contracts hedging gains, net of tax
|
||||||
($20.1 pre-tax)
|
---
|
---
|
---
|
12.3
|
---
|
12.3
|
Other comprehensive income
|
---
|
---
|
---
|
13.3
|
---
|
13.3
|
Comprehensive income
|
---
|
---
|
77.3
|
13.3
|
0.6
|
91.2
|
Dividends declared on common stock
|
---
|
---
|
(35.3)
|
---
|
---
|
(35.3)
|
Issuance of common stock
|
---
|
8.1
|
---
|
---
|
---
|
8.1
|
Balance at June 30, 2010
|
$ 1.0
|
$ 901.3
|
$ 1,258.7
|
$ (62.9)
|
$ 21.6
|
$ 2,119.7
|
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part hereof.
|
OGE ENERGY CORP.
|
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (CONTINUED)
|
||||||
(Unaudited)
|
||||||
Premium
|
Accumulated
|
|||||
on
|
Other
|
|||||
Common
|
Capital
|
Retained
|
Comprehensive
|
Noncontrolling
|
||
(In millions)
|
Stock
|
Stock
|
Earnings
|
Income (Loss)
|
Interest
|
Total
|
Balance at December 31, 2008
|
$ 0.9
|
$ 802.0
|
$ 1,107.6
|
$ (13.7)
|
$ 17.2
|
$ 1,914.0
|
Comprehensive income (loss)
|
||||||
Net income for first quarter of 2009
|
---
|
---
|
16.8
|
---
|
0.8
|
17.6
|
Other comprehensive income (loss), net of tax
|
||||||
Defined benefit pension plan and restoration of
|
||||||
retirement income plan:
|
||||||
Amortization of deferred net loss, net of tax ($1.3
pre-tax)
|
---
|
---
|
---
|
0.8
|
---
|
0.8
|
Defined benefit postretirement plans:
|
||||||
Amortization of deferred net loss, net of tax ($0.2
pre-tax)
|
---
|
---
|
---
|
0.1
|
---
|
0.1
|
Deferred commodity contracts hedging losses, net of tax
|
||||||
(($46.2) pre-tax)
|
---
|
---
|
---
|
(28.3)
|
---
|
(28.3)
|
Amortization of cash flow hedge, net of tax ($0.2 pre-tax)
|
---
|
---
|
---
|
0.1
|
---
|
0.1
|
Other comprehensive loss
|
---
|
---
|
---
|
(27.3)
|
---
|
(27.3)
|
Comprehensive income (loss)
|
---
|
---
|
16.8
|
(27.3)
|
0.8
|
(9.7)
|
Dividends declared on common stock
|
---
|
---
|
(34.2)
|
---
|
---
|
(34.2)
|
Issuance of common stock
|
0.1
|
55.7
|
---
|
---
|
---
|
55.8
|
Balance at March 31, 2009
|
$ 1.0
|
$ 857.7
|
$ 1,090.2
|
$ (41.0)
|
$ 18.0
|
$ 1,925.9
|
Comprehensive income (loss)
|
||||||
Net income for second quarter of 2009
|
---
|
---
|
70.5
|
---
|
0.4
|
70.9
|
Other comprehensive income (loss), net of tax
|
||||||
Defined benefit pension plan and restoration of
|
||||||
retirement income plan:
|
||||||
Amortization of deferred net loss, net of tax ($1.3
|
||||||
pre-tax)
|
---
|
---
|
---
|
0.7
|
---
|
0.7
|
Amortization of prior service cost, net of tax
|
||||||
($0.1 pre-tax)
|
---
|
---
|
---
|
0.1
|
---
|
0.1
|
Defined benefit postretirement plans:
|
||||||
Amortization of prior service cost, net of tax
|
||||||
($0.1 pre-tax)
|
---
|
---
|
---
|
0.1
|
---
|
0.1
|
Deferred commodity contracts hedging losses, net of tax
|
||||||
(($32.4) pre-tax)
|
---
|
---
|
---
|
(19.8)
|
---
|
(19.8)
|
Amortization of cash flow hedge, net of tax ($0.1
pre-tax)
|
---
|
---
|
---
|
0.1
|
---
|
0.1
|
Other comprehensive loss
|
---
|
---
|
---
|
(18.8)
|
---
|
(18.8)
|
Comprehensive income (loss)
|
---
|
---
|
70.5
|
(18.8)
|
0.4
|
52.1
|
Dividends declared on common stock
|
---
|
---
|
(34.4)
|
---
|
---
|
(34.4)
|
Issuance of common stock
|
---
|
14.1
|
---
|
---
|
---
|
14.1
|
Balance at June 30, 2009
|
$ 1.0
|
$ 871.8
|
$ 1,126.3
|
$ (59.8)
|
$ 18.4
|
$ 1,957.7
|
The accompanying Notes to Condensed Consolidated Financial Statements are an integral part hereof.
|
June 30,
|
December 31,
|
|||||
(In millions)
|
2010
|
2009
|
||||
Regulatory Assets
|
||||||
Benefit obligations regulatory asset
|
$
|
341.3
|
$
|
357.8
|
||
Income taxes recoverable from customers, net
|
39.8
|
19.1
|
||||
Deferred storm expenses
|
32.3
|
28.0
|
||||
Unamortized loss on reacquired debt
|
16.0
|
16.5
|
||||
Deferred pension plan expenses
|
15.8
|
18.1
|
||||
Smart Grid
|
7.7
|
---
|
||||
Red Rock deferred expenses
|
7.5
|
7.7
|
||||
Fuel clause under recoveries
|
0.9
|
0.3
|
||||
Miscellaneous
|
3.0
|
3.9
|
||||
Total Regulatory Assets
|
$
|
464.3
|
$
|
451.4
|
||
Regulatory Liabilities
|
||||||
Accrued removal obligations, net
|
$
|
175.5
|
$
|
168.2
|
||
Fuel clause over recoveries
|
137.4
|
187.5
|
||||
Miscellaneous
|
10.2
|
7.3
|
||||
Total Regulatory Liabilities
|
$
|
323.1
|
$
|
363.0
|
June 30, 2010
|
||||||||||||||||||||||
(In millions)
|
Quoted
Market
Prices in
Active
Market for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total Fair
Value
|
Master
Netting
Agreement
Adjustments
|
Amounts Held
in Clearing
Broker
Accounts
Reflected in
Other Current
Assets
|
Balance
Sheet
Presentation
|
|||||||||||||||
Assets
|
||||||||||||||||||||||
Commodity
contracts
|
$
|
14.3
|
$
|
6.4
|
$
|
42.1
|
$
|
62.8
|
$
|
(36.6)
|
$
|
(15.7)
|
$
|
10.5
|
||||||||
Gas imbalance
assets (A)
|
---
|
5.0
|
---
|
5.0
|
---
|
---
|
5.0
|
|||||||||||||||
Total
|
$
|
14.3
|
$
|
11.4
|
$
|
42.1
|
$
|
67.8
|
$
|
(36.6)
|
$
|
(15.7)
|
$
|
15.5
|
||||||||
Liabilities
|
||||||||||||||||||||||
Commodity
contracts
|
$
|
13.7
|
$
|
45.8
|
$
|
1.8
|
$
|
61.3
|
$
|
(36.6)
|
$
|
(15.1)
|
$
|
9.6
|
||||||||
Gas imbalance
liabilities (A)(B)
|
---
|
3.0
|
---
|
3.0
|
---
|
---
|
3.0
|
|||||||||||||||
Total
|
$
|
13.7
|
$
|
48.8
|
$
|
1.8
|
$
|
64.3
|
$
|
(36.6)
|
$
|
(15.1)
|
$
|
12.6
|
December 31, 2009
|
||||||||||||||||||||||
(In millions)
|
Quoted
Market
Prices in
Active
Market for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total Fair
Value
|
Master
Netting
Agreement
Adjustments
|
Amounts Held
in Clearing
Broker
Accounts
Reflected in
Other Current
Assets
|
Balance
Sheet
Presentation
|
|||||||||||||||
Assets
|
||||||||||||||||||||||
Commodity
contracts
|
$
|
16.1
|
$
|
6.2
|
$
|
49.0
|
$
|
71.3
|
$
|
(47.9)
|
$
|
(17.3)
|
$
|
6.1
|
||||||||
Gas imbalance
assets (C)
|
---
|
3.2
|
---
|
3.2
|
---
|
---
|
3.2
|
|||||||||||||||
Total
|
$
|
16.1
|
$
|
9.4
|
$
|
49.0
|
$
|
74.5
|
$
|
(47.9)
|
$
|
(17.3)
|
$
|
9.3
|
||||||||
Liabilities
|
||||||||||||||||||||||
Commodity
contracts
|
$
|
13.3
|
$
|
49.8
|
$
|
14.7
|
$
|
77.8
|
$
|
(47.9)
|
$
|
(15.6)
|
$
|
14.3
|
||||||||
Gas imbalance
liabilities (C)(D)
|
---
|
8.0
|
---
|
8.0
|
---
|
---
|
8.0
|
|||||||||||||||
Total
|
$
|
13.3
|
$
|
57.8
|
$
|
14.7
|
$
|
85.8
|
$
|
(47.9)
|
$
|
(15.6)
|
$
|
22.3
|
Assets
|
Commodity Contracts
|
|||||
(In millions)
|
2010
|
2009
|
||||
Balance at January 1
|
$
|
49.0
|
$
|
121.2
|
||
Total gains or losses
|
||||||
Included in other comprehensive income
|
(3.9)
|
(11.1)
|
||||
Purchases, issuances, sales and settlements
|
||||||
Settlements
|
(4.1)
|
(4.5)
|
||||
Balance at March 31
|
$
|
41.0
|
$
|
105.6
|
||
Total gains or losses
|
||||||
Included in other comprehensive income
|
7.2
|
(34.4)
|
||||
Purchases, issuances, sales and settlements
|
||||||
Settlements
|
(6.1)
|
(3.9)
|
||||
Balance at June 30
|
$
|
42.1
|
$
|
67.3
|
||
The amount of total gains or losses for the period included in earnings attributable
|
||||||
to the change in unrealized gains or losses relating to assets held at June 30
|
$
|
---
|
$
|
---
|
Liabilities
|
Commodity Contracts
|
|||||
(In millions)
|
2010
|
2009
|
||||
Balance at January 1
|
$
|
14.7
|
$
|
---
|
||
Total gains or losses
|
||||||
Included in other comprehensive income
|
(5.1)
|
---
|
||||
Purchases, issuances, sales and settlements
|
||||||
Settlements
|
(1.4)
|
---
|
||||
Balance at March 31
|
$
|
8.2
|
$
|
---
|
||
Total gains or losses
|
||||||
Included in other comprehensive income
|
(3.7)
|
---
|
||||
Purchases, issuances, sales and settlements
|
||||||
Purchases
|
---
|
1.8
|
||||
Settlements
|
(2.7)
|
---
|
||||
Balance at June 30
|
$
|
1.8
|
$
|
1.8
|
||
The amount of total gains or losses for the period included in earnings attributable
|
||||||
to the change in unrealized gains or losses relating to liabilities held at June 30
|
$
|
---
|
$
|
---
|
June 30, 2010
|
December 31, 2009
|
|||||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||||
(In millions)
|
Amount
|
Value
|
Amount
|
Value
|
||||||||||||||
Price Risk Management Assets
|
||||||||||||||||||
Energy Derivative Contracts
|
$
|
10.5
|
$
|
10.5
|
$
|
6.1
|
$
|
6.1
|
||||||||||
Price Risk Management Liabilities
|
||||||||||||||||||
Energy Derivative Contracts
|
$
|
9.6
|
$
|
9.6
|
$
|
14.3
|
$
|
14.3
|
||||||||||
Long-Term Debt
|
||||||||||||||||||
OG&E Senior Notes
|
$
|
1,654.9
|
$
|
1,872.6
|
$
|
1,406.4
|
$
|
1,492.1
|
||||||||||
OGE Energy Senior Notes
|
99.6
|
107.4
|
99.5
|
102.6
|
||||||||||||||
OG&E Industrial Authority Bonds
|
135.4
|
135.4
|
135.4
|
135.4
|
||||||||||||||
Enogex Senior Notes
|
447.7
|
484.9
|
736.8
|
746.7
|
||||||||||||||
Enogex Revolving Credit Agreement
|
65.0
|
65.0
|
---
|
---
|
Ÿ
|
natural gas liquids (“NGL”) put options and NGLs swaps are used to manage Enogex’s NGLs exposure associated with its processing agreements;
|
Ÿ
|
natural gas swaps are used to manage Enogex’s keep-whole natural gas exposure associated with its processing operations and Enogex’s natural gas exposure associated with operating its gathering, transportation and storage assets;
|
Ÿ
|
natural gas futures and swaps and natural gas commodity purchases and sales are used to manage OGE Energy’s natural gas marketing subsidiary, OGE Energy Resources, Inc.’s (“OERI”), natural gas exposure associated with its storage and transportation contracts; and
|
Ÿ
|
natural gas futures and swaps, natural gas options and natural gas commodity purchases and sales are used to manage OERI’s marketing and trading activities.
|
Gross Notional
|
|||||
Commodity
|
Volume (A)
|
Maturity
|
|||
(In millions)
|
|||||
Short Financial Swaps/Futures (fixed)
|
NGLs
|
0.3
|
Current
|
||
Purchased Financial Options
|
NGLs
|
1.3
|
Current
|
||
Purchased Financial Options
|
NGLs
|
0.7
|
Non-Current
|
||
Total Purchased Financial Options
|
2.0
|
||||
Long Financial Swaps/Futures (fixed)
|
Natural Gas
|
5.7
|
Current
|
||
Long Financial Swaps/Futures (fixed)
|
Natural Gas
|
2.6
|
Non-Current
|
||
Total Long Financial Swaps/Futures (fixed)
|
8.3
|
||||
Short Financial Swaps/Futures (fixed)
|
Natural Gas
|
0.9
|
Current
|
||
Short Financial Basis Swaps
|
Natural Gas
|
0.9
|
Current
|
Gross Notional
|
|||||
Commodity
|
Volume (A)
|
Maturity
|
|||
(In millions)
|
|||||
Short Financial Swaps/Futures (fixed)
|
NGLs
|
0.4
|
Current
|
||
Long Financial Swaps/Futures (fixed)
|
NGLs
|
0.4
|
Current
|
||
Physical Purchases (B)
|
Natural Gas
|
16.6
|
Current
|
||
Physical Purchases (B)
|
Natural Gas
|
5.8
|
Non-Current
|
||
Total Physical Purchases
|
22.4
|
||||
Physical Sales (B)
|
Natural Gas
|
30.1
|
Current
|
||
Physical Sales (B)
|
Natural Gas
|
16.8
|
Non-Current
|
||
Total Physical Sales
|
46.9
|
||||
Long Financial Swaps/Futures (fixed)
|
Natural Gas
|
34.7
|
Current
|
||
Long Financial Swaps/Futures (fixed)
|
Natural Gas
|
1.5
|
Non-Current
|
||
Total Long Financial Swaps/Futures (fixed)
|
36.2
|
||||
Short Financial Swaps/Futures (fixed)
|
Natural Gas
|
35.2
|
Current
|
||
Short Financial Swaps/Futures (fixed)
|
Natural Gas
|
3.0
|
Non-Current
|
||
Total Short Financial Swaps/Futures (fixed)
|
38.2
|
||||
Purchased Financial Option
|
Natural Gas
|
20.1
|
Current
|
||
Sold Financial Option
|
Natural Gas
|
18.8
|
Current
|
||
Long Financial Basis Swaps
|
Natural Gas
|
11.1
|
Current
|
||
Long Financial Basis Swaps
|
Natural Gas
|
1.5
|
Non-Current
|
||
Total Long Financial Basis Swaps
|
12.6
|
||||
Short Financial Basis Swaps
|
Natural Gas
|
9.8
|
Current
|
||
Short Financial Basis Swaps
|
Natural Gas
|
1.5
|
Non-Current
|
||
Total Short Financial Basis Swaps
|
11.3
|
||||
(A) Natural gas in MMBtu; NGLs in barrels.
|
|||||
(B) Of the natural gas physical purchases and sales volumes not designated as cash flow or fair value hedges, the majority are priced based on a monthly or daily index and the fair value is subject to little or no market price risk.
|
Fair Value
|
|||||||||||||||||
Balance Sheet
|
|||||||||||||||||
Instrument
|
Commodity
|
Location
|
Assets
|
Liabilities
|
|||||||||||||
(In millions)
|
|||||||||||||||||
Derivatives Designated as Hedging Instruments
|
|||||||||||||||||
Financial Options
|
NGLs
|
Current PRM
|
$
|
26.2
|
$
|
---
|
|||||||||||
Non-Current PRM
|
14.4
|
---
|
|||||||||||||||
Financial Futures/Swaps
|
NGLs
|
Current PRM
|
0.1
|
0.7
|
|||||||||||||
Financial Futures/Swaps
|
Natural Gas
|
Current PRM
|
---
|
23.5
|
|||||||||||||
Non-Current PRM
|
---
|
12.2
|
|||||||||||||||
Other Current Assets
|
3.1
|
0.1
|
|||||||||||||||
Total Gross Derivatives Designated as Hedging Instruments
|
$
|
43.8
|
$
|
36.5
|
|||||||||||||
Derivatives Not Designated as Hedging Instruments
|
|||||||||||||||||
Financial Futures/Swaps (A)
|
NGLs
|
Current PRM
|
$
|
1.4
|
$
|
1.1
|
|||||||||||
Financial Futures/Swaps (B)
|
Natural Gas
|
Current PRM
|
3.0
|
7.2
|
|||||||||||||
Other Current Assets
|
11.5
|
14.0
|
|||||||||||||||
Physical Purchases/Sales
|
Natural Gas
|
Current PRM
|
1.7
|
1.5
|
|||||||||||||
Non-Current PRM
|
0.3
|
---
|
|||||||||||||||
Financial Options
|
Natural Gas
|
Other Current Assets
|
1.1
|
1.0
|
|||||||||||||
Total Gross Derivatives Not Designated as Hedging Instruments
|
$
|
19.0
|
$
|
24.8
|
|||||||||||||
Total Gross Derivatives (C)
|
$
|
62.8
|
$
|
61.3
|
(A)
|
The fair value of Financial Futures/Swaps – NGLs not designated as hedging instruments includes derivatives that were previously designated as hedging instruments and subsequently de-designated and off-setting derivatives were entered to close the hedge positions. The referenced derivatives had a fair value as presented in the table above in Current Assets of approximately $1.4 million and Current Liabilities of approximately $1.1 million.
|
(B)
|
The fair value of Financial Futures/Swaps – Natural Gas not designated as hedging instruments includes derivatives that were previously designated as hedging instruments and subsequently de-designated and off-setting derivatives were entered to close the hedge positions. The referenced derivatives had a fair value as presented in the table above in Current Assets of approximately $2.1 million and Current Liabilities of approximately $6.8 million.
|
(C)
|
See reconciliation of the Company’s total derivatives fair value to the Company’s Condensed Consolidated Balance Sheet at June 30, 2010 (see Note 2).
|
Fair Value
|
|||||||||||||||||
Balance Sheet
|
|||||||||||||||||
Instrument
|
Commodity
|
Location
|
Assets
|
Liabilities
|
|||||||||||||
(In millions)
|
|||||||||||||||||
Derivatives Designated as Hedging Instruments
|
|||||||||||||||||
Financial Options
|
NGLs
|
Current PRM
|
$
|
16.4
|
$
|
---
|
|||||||||||
Non-Current PRM
|
23.4
|
---
|
|||||||||||||||
Financial Futures/Swaps
|
NGLs
|
Current PRM
|
---
|
6.1
|
|||||||||||||
Financial Futures/Swaps
|
Natural Gas
|
Current PRM
|
---
|
14.8
|
|||||||||||||
Non-Current PRM
|
---
|
19.7
|
|||||||||||||||
Other Current Assets
|
4.6
|
1.2
|
|||||||||||||||
Total Gross Derivatives Designated as Hedging Instruments
|
$
|
44.4
|
$
|
41.8
|
|||||||||||||
Derivatives Not Designated as Hedging Instruments
|
|||||||||||||||||
Financial Futures/Swaps (D)
|
NGLs
|
Current PRM
|
$
|
9.2
|
$
|
8.6
|
|||||||||||
Financial Futures/Swaps (E)
|
Natural Gas
|
Current PRM
|
3.6
|
12.3
|
|||||||||||||
Non-Current PRM
|
---
|
0.1
|
|||||||||||||||
Other Current Assets
|
11.8
|
13.6
|
|||||||||||||||
Physical Purchases/Sales
|
Natural Gas
|
Current PRM
|
0.8
|
0.6
|
|||||||||||||
Non-Current PRM
|
0.6
|
---
|
|||||||||||||||
Financial Options
|
Natural Gas
|
Other Current Assets
|
0.9
|
0.8
|
|||||||||||||
Total Gross Derivatives Not Designated as Hedging Instruments
|
$
|
26.9
|
$
|
36.0
|
|||||||||||||
Total Gross Derivatives (F)
|
$
|
71.3
|
$
|
77.8
|
|||||||||||||
(D)
|
The entire fair value of Financial Futures/Swaps – NGLs not designated as hedging instruments includes derivatives that were previously designated as hedging instruments and subsequently de-designated with offsetting derivatives to close the hedge positions.
|
||||||||||||||||
(E)
|
The fair value of Financial Futures/Swaps – Natural Gas not designated as hedging instruments includes derivatives that were previously designated as hedging instruments and subsequently de-designated with offsetting derivatives to close the hedge positions. The referenced derivatives had a fair value as presented in the table above in Current Assets of approximately $2.9 million and Current Liabilities of approximately $11.7 million.
|
||||||||||||||||
(F)
|
See reconciliation of the Company’s total derivatives fair value to the Company’s Condensed Consolidated Balance Sheet at December 31, 2009 (see Note 2).
|
Amount of
|
||||||||||||||||||
Gain or Loss
|
||||||||||||||||||
Amount of
|
Location of Gain or
|
Recognized
|
||||||||||||||||
Gain or Loss
|
Loss Recognized in
|
in Income on
|
||||||||||||||||
Amount of Gain
|
Reclassified
|
Income on
|
Derivative
|
|||||||||||||||
or Loss
|
from
|
Derivative
|
(Ineffective
|
|||||||||||||||
Recognized in
|
Location of Gain or
|
Accumulated
|
(Ineffective Portion
|
Portion and
|
||||||||||||||
OCI on
|
Loss Reclassified
|
OCI into
|
and Amount
|
Amount
|
||||||||||||||
Derivative
|
from Accumulated
|
Income
|
Excluded from
|
Excluded from
|
||||||||||||||
(Effective
|
OCI into Income
|
(Effective
|
Effectiveness
|
Effectiveness
|
||||||||||||||
Instrument
|
Portion)(A)
|
(Effective Portion)
|
Portion)
|
Testing)
|
Testing)
|
(In millions)
|
|
Derivatives in Cash Flow Hedging Relationships
|
|
NGLs Financial Options
|
$
|
10.5
|
Operating Revenues
|
$
|
1.1
|
Operating Revenues
|
$
|
---
|
||||||||||
NGLs Financial
|
||||||||||||||||||
Futures/Swaps
|
2.0
|
Operating Revenues
|
(0.5)
|
Operating Revenues
|
---
|
|||||||||||||
Natural Gas Financial
|
||||||||||||||||||
Futures/Swaps
|
---
|
Operating Revenues
|
(8.6)
|
Operating Revenues
|
---
|
|||||||||||||
Total
|
$
|
12.5
|
Total
|
$
|
(8.0)
|
Total
|
$
|
---
|
(A) The estimated net amount of gains or losses included in Accumulated Other Comprehensive Income at June 30, 2010 that is expected to be reclassified into
|
earnings within the next 12 months is a loss of approximately $12.5 million.
|
Amount of Gain or
|
||||||||||||||||||
Location of Gain or
|
Loss Recognized in
|
|||||||||||||||||
Loss Recognized in
|
Income of
|
|||||||||||||||||
Income on Derivative
|
Derivative
|
|||||||||||||||||
(In millions)
|
||||||||||||||||||
Derivatives Not Designated as Hedging Instruments
|
||||||||||||||||||
Natural Gas Physical Purchases/Sales
|
Operating Revenues
|
$
|
(3.7)
|
|||||||||||||||
Natural Gas Financial Futures/Swaps
|
Operating Revenues
|
(0.6)
|
||||||||||||||||
Total
|
$
|
(4.3)
|
Amount of
|
||||||||||||||||||
Gain or Loss
|
||||||||||||||||||
Amount of
|
Location of Gain or
|
Recognized
|
||||||||||||||||
Gain or Loss
|
Loss Recognized in
|
in Income on
|
||||||||||||||||
Amount of Gain
|
Reclassified
|
Income on
|
Derivative
|
|||||||||||||||
or Loss
|
from
|
Derivative
|
(Ineffective
|
|||||||||||||||
Recognized in
|
Location of Gain or
|
Accumulated
|
(Ineffective Portion
|
Portion and
|
||||||||||||||
OCI on
|
Loss Reclassified
|
OCI into
|
and Amount
|
Amount
|
||||||||||||||
Derivative
|
from Accumulated
|
Income
|
Excluded from
|
Excluded from
|
||||||||||||||
(Effective
|
OCI into Income
|
(Effective
|
Effectiveness
|
Effectiveness
|
||||||||||||||
Instrument
|
Portion)
|
(Effective Portion)
|
Portion)
|
Testing)
|
Testing)
|
(In millions)
|
|
Derivatives in Cash Flow Hedging Relationships
|
|
NGLs Financial Options
|
$
|
(23.9)
|
Operating Revenues
|
$
|
1.2
|
Operating Revenues
|
$
|
---
|
||||||||||
NGLs Financial
|
||||||||||||||||||
Futures/Swaps
|
(20.4)
|
Operating Revenues
|
4.6
|
Operating Revenues
|
---
|
|||||||||||||
Natural Gas Financial
|
||||||||||||||||||
Futures/Swaps
|
5.9
|
Operating Revenues
|
(12.3)
|
Operating Revenues
|
(0.3)
|
|||||||||||||
Total
|
$
|
(38.4)
|
Total
|
$
|
(6.5)
|
Total
|
$
|
(0.3)
|
Amount of Gain or
|
||||||||||||||||||
Location of Gain or
|
Loss Recognized in
|
|||||||||||||||||
Loss Recognized in
|
Income of
|
|||||||||||||||||
Income on Derivative
|
Derivative
|
|||||||||||||||||
(In millions)
|
||||||||||||||||||
Derivatives Not Designated as Hedging Instruments
|
||||||||||||||||||
Natural Gas Physical Purchases/Sales
|
Operating Revenues
|
$
|
(2.3)
|
|||||||||||||||
Natural Gas Financial Futures/Swaps
|
Operating Revenues
|
1.8
|
||||||||||||||||
Total
|
$
|
(0.5)
|
Amount of
|
||||||||||||||||||
Gain or Loss
|
||||||||||||||||||
Amount of
|
Location of Gain or
|
Recognized
|
||||||||||||||||
Gain or Loss
|
Loss Recognized in
|
in Income on
|
||||||||||||||||
Amount of Gain
|
Reclassified
|
Income on
|
Derivative
|
|||||||||||||||
or Loss
|
from
|
Derivative
|
(Ineffective
|
|||||||||||||||
Recognized in
|
Location of Gain or
|
Accumulated
|
(Ineffective Portion
|
Portion and
|
||||||||||||||
OCI on
|
Loss Reclassified
|
OCI into
|
and Amount
|
Amount
|
||||||||||||||
Derivative
|
from Accumulated
|
Income
|
Excluded from
|
Excluded from
|
||||||||||||||
(Effective
|
OCI into Income
|
(Effective
|
Effectiveness
|
Effectiveness
|
||||||||||||||
Instrument
|
Portion)(A)
|
(Effective Portion)
|
Portion)
|
Testing)
|
Testing)
|
(In millions)
|
|
Derivatives in Cash Flow Hedging Relationships
|
|
NGLs Financial Options
|
$
|
11.0
|
Operating Revenues
|
$
|
0.5
|
Operating Revenues
|
$
|
---
|
||||||||||
NGLs Financial
|
||||||||||||||||||
Futures/Swaps
|
3.3
|
Operating Revenues
|
(1.8)
|
Operating Revenues
|
---
|
|||||||||||||
Natural Gas Financial
|
||||||||||||||||||
Futures/Swaps
|
(9.9)
|
Operating Revenues
|
(12.0)
|
Operating Revenues
|
0.1
|
|||||||||||||
Total
|
$
|
4.4
|
Total
|
$
|
(13.3)
|
Total
|
$
|
0.1
|
(A) The estimated net amount of gains or losses included in Accumulated Other Comprehensive Income at June 30, 2010 that is expected to be reclassified into
|
earnings within the next 12 months is a loss of approximately $12.5 million.
|
Amount of Gain or
|
||||||||||||||||||
Location of Gain or
|
Loss Recognized in
|
|||||||||||||||||